Homes warning as green vision unveiled

Homeowners who refuse to make their properties energy efficient will face financial penalties under drastic government plans to transform Britain into the world's first 'green' economy.

Ministers yesterday promised deep cuts to greenhouse gas emissions that they warned would mean everyone in the country having to 'live, work and travel differently'.

They compared the scale of change that was necessary to reduce emissions by 60% by 2050 to the industrial revolution of the 18th century.

The Government said that every new home should be 'carbon neutral' within ten years - and existing properties subject to a 'home energy audit' to assess how green they are.

Householders would be given access to 'hassle-free' renovation services to improve the energy efficiency of their homes. They would be able to 'buy now, pay later' for green improvements as their fuel bills decreased.

Zero carbon homes are insulated to reduce heating costs, use solar panels, windpower or other renewable energy sources, are made with environmentally friendly materials and use energy efficient light bulbs and appliances.

Critics said the plans raised the prospect of 'eco-snoopers' inspecting homes. Blair Gibbs, of the Taxpayers' Alliance, said: 'It's bad enough that politicians want to take so much of our money away in tax. For them also to intrude into our homes in order to have the ability to penalise us even further is simply unacceptable.'

Unveiling the plans, Environment Secretary David Miliband said it would be 'painful' to continue to have an 'energy inefficient home'. Those that did would face higher bills, he added.

Transport will also undergo radical overhaul as Britain moves towards becoming a 'low- carbon economy', the Government said.

Vehicles will be made more fuel efficient, effectively forcing current gas-guzzling models off the road.

The Government is to work with the EU on new laws setting a new average emissions target of 130g of carbon dioxide per kilometre - well below most of today's models - with further reductions to follow.

People are to be encouraged to make 'more sustainable' travel choices, including greater use of public transport, walking and cycling. The Government is also to invest in solar, wind and wave power.

A draft Climate Change Bill published yesterday dismissed sceptics, insisting there was 'no longer any real debate' that climate change was happening and man-made emissions were the main cause. In a sign of the importance the Government attaches to the legislation, the Prime Minister, his expected successor Gordon Brown, and Mr Miliband, touted as a future Labour leader, unveiled the Bill together in Downing Street.

Mr Blair compared the fight against climate change to the battle against fascism. Labour's legislation sets an interim target of a 26% to 32% reduction in carbon dioxide emissions by 2020, and 60% by 2050. It will make Britain the first country in the world with legally binding targets.

A panel will advise ministers on carbon targets every five years. If they miss the figure, future governments will face court action. The draft Bill will now be subject to consultation, but the Government hopes it will be law by Easter 2008.

Mr Brown, who doubled air passenger duty last year, said he would not impose further 'green taxes' on aviation in next week's Budget.

But airlines suggested fares may have to rise anyway under the Government's plans. British Airways bosses told MPs ticket hikes could result from plans to include airlines in an EU emissions trading scheme - in which firms receive credits which allow them to emit specific amounts of greenhouse gases, but have to buy more if they exceed their limit.

Opposition politicians and green campaigners said the Government's proposals did not go far enough, insisting binding targets on emissions should be annual.

Tory spokesman Peter Ainsworth said: 'There is a danger that the five-year approach will enable responsibility for failure to be shunted on from one government to another.'